CHINA CURRENCY COALITION WASHINGTON, D.C.
China Currency Coalition Welcomes Introduction
of Dodd-Shelby Bill
As a Helpful Step to Address Currency Manipulation
(Washington, D.C.) (June 21, 2007) – The China Currency Coalition (“CCC”), an alliance of industry, agriculture, and worker organizations whose mission is to support U.S. manufacturing, voiced its support of the Dodd-Shelby bill introduced today as a positive development in on-going efforts needed by the United States and the international community to rein in dangerous trade imbalances attributable to currency manipulation.
“Enactment of the Dodd-Shelby bill would be a key step forward in addressing the China currency issue,” said David A. Hartquist, counsel to the CCC. “The Treasury Department and the International Monetary Fund should make every effort to discourage and correct protracted undervaluation of countries’ currencies as a monetary problem,” he continued, “and the Dodd-Shelby bill is a significant help in this regard. We appreciate that Chairman Dodd recognizes that additional legislation may be appropriate to address countervailable subsidies resulting from China’s currency manipulation.”
“At the same time,” noted Hartquist, “when a currency is seriously undervalued for a protracted period of time, as China’s has been since 1994, there are very damaging effects on trade. It is vitally important that the hybrid nature of this sort of exchange-rate misalignment is acknowledged so that both the negative monetary and trade aspects of such behavior by a country are addressed. That is why the CCC continues to urge passage of the Bunning-Stabenow-Bayh-Snowe bill, S. 796, and its counterpart in the House, the Ryan-Hunter bill, H.R. 782. These bills recognize that undervalued exchange-rate misalignment by China or any other country is a countervailable prohibited export subsidy under U.S. and international law. The CCC is very grateful to Senators Bayh, Bunning, and Stabenow and to Congressmen Ryan and Hunter for their leadership on this important issue.”
The China Currency Coalition’s co-chairs are AFL-CIO Secretary-Treasurer Richard L. Trumka and Doug Bartlett, Chairman of Bartlett Manufacturing Company, Inc., in Cary, Illinois, and also Chairman of the United States Business & Industry Council. David A. Hartquist is a senior partner at the Washington, D.C. office of Kelley Drye Collier Shannon where he heads the international trade practice.